Jubilant FoodWorks: Why the expensive valuation doesn’t matter
With continuous menu innovation, proven efficient delivery model and further strengthening of digital capabilities, Jubilant FoodWorks looks to build on its dominant position in the QSR space
July 23, 2021 / 12:02 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Jubilant FoodWorks Ltd’s (JFL; CMP: Rs 3,430; Market Capitalisation: Rs 45,261 crore) June-quarter results were better than Street expectations. While revenues were broadly in line with expectations, margin performance was ahead of estimates. JFL managed to maintain the margins on a sequential basis, despite lower top line and cost pressures.
The company is poised to emerge stronger, post COVID-19, driven by an accelerated shift towards the organised segment, aggressive store expansion of the key Domino’s brand, scale-up of new product...